Contract Hire and Leasing: Frequently Asked Questions

Car leasing, or Contract Hire, works much like renting a car, allowing you to drive a vehicle for a set period—typically between 2 to 5 years—for a fixed monthly fee.

With a lease, you have full control over the make, model, and specifications of your vehicle, including color and trim. Your contract is customized to fit your needs, considering factors such as your estimated annual mileage, preferred lease duration, and payment structure.

At the end of the lease term, you simply return the vehicle, undergo a standard inspection, and your payments stop—giving you the option to lease a new car if you choose.

Leasing a car comes with numerous advantages, offering a cost-effective and hassle-free way to drive a new vehicle. Here are some key benefits:

• Drive a brand-new car every few years – Enjoy the latest makes, models, technology, and safety features without the long-term commitment.
• Avoid the costs and headaches of an aging car – No need to worry about expensive repairs or declining performance.
• Lower upfront and monthly payments – Leasing often provides the most affordable way to drive a new car, with lower initial and ongoing costs compared to buying.
• More choice, possibly a better car – Leasing gives you access to a wider selection of vehicles, often allowing you to afford a higher-spec model than expected.
• Preserve your savings – With a smaller initial payment required, you can keep more of your hard-earned money for other priorities.
• No depreciation worries – Since you don’t own the car, you’re not affected by its declining value—most cars lose 50-60% of their worth in the first three years.
• No hassle of selling – At the end of your lease, simply return the car without the stress of finding a buyer.

📌 For more details, please ask. Manufacturer-provided breakdown cover, full warranty, MOT requirements, and road tax may vary based on lease terms, manufacturer, or finance provider.

Step 1: Choose Your Car
Browse our wide selection of leading makes and models, with plenty of optional extras to customize your vehicle to your exact needs.

Step 2: Place Your Order
Once your credit is approved, our sales team will handle the ordering process for you.

Step 3: Sign Your Documents
You’ll receive all necessary documents through our admin team —simply sign and return them online.

Step 4: Take Delivery
Whether you’ve chosen an in-stock vehicle or a factory order built to your specifications, we’ll keep you updated throughout the process until your car arrives.

Step 5: Enjoy Your Car
Drive with confidence, knowing we’re here to assist you whenever needed.

Step 6: Choose Your Next Car
As your lease nears its end, we’ll get in touch in plenty of time to help you select and order your next vehicle, should you wish to lease again.

This refers to the structure of lease payments for a contract. These ‘payment profiles’ can be customized to align with your preferences, though the initial payment typically equals either 3, 6, or 9 months’ worth of lease payments.

In the first example (9 + 23), the contract spans 24 months. Here, the initial payment covers 9 months’ worth of lease payments. After this one-time fee, the remaining 23 months are paid in monthly installments. In the second example (6 + 35), the contract runs for 36 months. The initial payment equals 6 months’ lease payments, followed by 35 monthly payments.

As a general rule, a higher upfront payment results in lower ongoing monthly payments, and vice versa. Regardless of the structure, the total amount payable over the lease term remains virtually the same.

The administration fee, or acceptance/processing fee, covers admin costs like registering the deal, setting up finance and the issuing any documentation.

Administration fees are normally charged on signing of the order form.

Once your lease contract comes to an end, all you need to do is hand back the vehicle to the company, who will usually collect it for free! 

They will check the paperwork, inspect the car for any damage and check the car is within its mileage limit. It is never expected for a lease car to be in brand-new condition at the end of the lease, and fair wear and tear on the vehicle won’t constitute for damage costs to be paid. 

If you plan ahead and are taking another deal, you could get your new vehicle delivered at the same time as the other is being collected – avoiding any long waits in between!

The time it takes to lease a vehicle is what’s known as the ‘lead time’ (from when the order is placed to receiving the vehicle). 

Typically, for in stock vehicles this process takes around 2-3 weeks once a provider has processed a finance application, payment details and other necessary information, but can be several weeks for factory orders.

The Financial Conduct Authority (FCA) regulates the UK financial market, protecting both consumers and companies selling finance. 

Clear Car Leasing is authorised and regulated by the FCA, so you can have confidence in the service we provide. Our registered number is: 672629

The British Vehicle Rental and Leasing Association (BVRLA) is the trade body for car leasing in the UK.

It seeks to look after the interests of, and sets standards for operational quality for, both the contract hire and leasing sectors and the daily hire (car rental) sectors. The BVRLA represents both the business contract hire and personal contract purchase industry.

The BVRLA’s activities also include lobbying government in respect of any fiscal matter which may affect the industry, and shaping policy and regulation changes. This involves developing policy areas across the wide range of industry issues, lobbying decision-makers in the UK and in Europe.

Excess mileage charges represent the fees you will pay to the finance provider if you go over your pre-agreed mileage allowance. The excess mileage charge is calculated at a pence per mile (PPM) rate. 

Put simply, the more you go over your pre-agreed mileage, the more it will cost you in excess mileage charges.

Every contract will have a differing pence per mile cost which will be given to you alongside the quote and once again with the official contract documents. 

Some tips on avoiding the charges:

1) Be realistic with how many miles you drive in a year
2) Add some extra miles as a safety net
3) Notify the funder of any changes in circumstances to see if you can increase the contract mileage mid-way

With leasing (similar to owning), you are responsible for servicing, maintaining, and ensuring your vehicle passes its MOT (if the vehicle is over 3 years old). Additionally, you’ll need to adhere to your agreed annual mileage limit and take good care of the car. When the lease ends, any damage should fall within the Fair Wear and Tear Guidelines to avoid additional charges.

If you’d like more information about our hassle-free maintenance packages, feel free to contact one of our expert Leasing Consultants by calling 01904 557 536 or emailing hello@autohorn.co.uk.  We’re here to help!

UK law states that if you own, lease or rent a vehicle, you must have appropriate motor insurance in place to use the vehicle on UK roads and in public places. 

For lease vehicles, the vehicle must be insured on a fully comprehensive insurance policy provided by the lease holder. 

In this situation, you should review your finance company’s Fair Wear and Tear Guidelines to determine whether the damage falls within acceptable limits or not.

If the damage goes beyond these guidelines, the finance company may impose a charge. To avoid this, it’s advisable to repair any damage before returning the vehicle.

When you return your vehicle a member of the team will assess the body condition, mileage and fuel level of your vehicle weighted against your original vehicle condition report (VCR). If there are any changes to the condition of the vehicle and the damage falls out of standard, you will receive a notification of this via email or phone.

As members of the British Vehicle Leasing and Rental Association, we adhere to industry standard guidelines to ensure that damage is assessed fairly against general fair wear and tear.

Please click on this link to view an interactive guide on acceptable or unacceptable return standards.

If you wish to contact our fleet team directly about damage to your vehicle, please call 01904 557 521 or email fleetmaintenance.support@autohorn.co.uk